In the sale of football TV rights, capitalism is acting against the consumer, against the companies, against the clubs. The only beneficiaries are the tiny number of top-rated players.

The recent 70% increase will by-pass everyone else and go directly to these players. So if Radamel Falcao gets £300,000 per game now, he can look forward to £510,000 per game next year. However, his talent will not increase by 70%. His productivity will not increase by 70%. The fans will not receive a 70% increase in benefit. This is the dysfunctional way the market works, in football rights.

The buyers of the rights, BT and Sky are uninterested in football itself. They want to sell TV in order to bundle telephone and broadband into the sale.
Football is unique as an anchor for the sales of these other products. But because fans have no other way to enjoy their team, the prices gets forced up by the commerce of phone, internet, TV. This is not healthy competition that drives down prices for consumers, but unhealthy competition that drives them up.

It has got so bad that most people are forced to go to the pub to watch a game of football, because they can’t afford it at home. Dads used to bond with sons over this game, but not anymore. Read the rest of this entry »